Excessive public deficits procedure

Participants in the Economic and Monetary Union must, according to the Stability and Growth Pact, only have a deficit of the general government budget not exceeding 3% of gross domestic product (GDP).

The Commission launches "The procedure for excessive deficits" when there is a danger that a country exceeds the 3% limit.

The three-percent ceiling is now supplemented with a ceiling of 0.5% of the so-called structural deficit, where they have disregarded the business cycle. 

Links 

See also the Convergence criteria and the Economic and Monetary Union. 

http://europa.eu/scadplus/leg/en/lvb/l25009.htm